Tuesday, October 23, 2012
Morning Charts 10/23/12 SPX /ES
Once the Fed eased things got a bit dull on the rumor/news front. In yet another funny post from CNBS (where strange post titles usually mislead you to even stranger posts), you get the question, After QE3, Can the Fed Excite Markets This Week? This week? LMAO.
Let me help the government employees at CNBS and explain this where everyone can understand. Sugar daddy (Bernanke) gave the prostitutes (the market/government) their fix, but promises there is plenty more where that came from. In the mean time the prostitute does not give a shit cause she got what she needed and is high as hell. Not until she comes down and then does a little more work will Uncle Benny show up with another hit.
We're coming out of that "does not give a shit" high as hell stage right now and already looking for another fix. Funny how tolerance gets built up and it takes more shit and more frequent hits of the same shit to get the desired results. Didn't we get high just a couple of week ago? Heck, check out Japan, Japanese Government Demands BOJ Do QE 9 One Month After Failed QE 8 and you will get what I am talking about.
Just ask the ECB and the EU how this story plays out. They ran thru two sugar daddys and are down to the supplier (Gremany) now. Pretty bad when you get to the stage where old worn down crack whores (the PIIS - that's PIIGS without Germany) showing up at your door looking for another hit willing to do anything to get their fix on. Isn't central planning without regulation wonderful! The US is right on their heels.
Politically, the US is a disaster zone. I've asked before and I'll ask again, if this is all we have to choose from for our president then WTF? The political divide in this country has never been greater, which means the central elite have us right where they want us. Reading With Obama Supporters Continue Threats To Riot, Assassinate Romney you will get the depth of the hysteria that grips this once great nation right now.
Most know that I wholeheartedly agree with Govenor Christie: ‘What The Hell Is Obama Doing Asking For Another 4 Years?’. Then again as stated many times before, Romney is no better. He is just a longer way around to the same end point. Or you can look at is as do you want this country to take its final blows under a black or a white man.
Obummer has been nothing but a fraud from the start and hopefully the Donald Trump claims Barack Obama bombshell Wednesday around noon on twitter will do the trick to assist in removing the socialist leader from of the oval office. I'm not sure how much help the Donald will get from the controlled MSM, but maybe, just maybe, when the media figures out that O will not be reinstated as dictator, maybe then they will begin to report truthfully on who I believe is the worst president this country has ever seen.
On to the markets -
Well, are the daily divergences off the triple top playing out? Is this actually happening? Did we have a sell the news event when QE3 was finally announced? Is that 5 to 10% corrective that would happen under "normal" circumstances that I have been telling you about actually playing out?
The markets are trying diligently to move thru the first major resistance point at this time. I've been mulling over a major top call ever since the market hit the first double top at 1375 back in august, but at the same time I had warned of "unprecedented manipulation" of which we got a lot of. Everything since August has been nothing but an overbought, overthrown, blow off top, uber exuberance bull trap.
Daily SPX - A couple of weeks ago I mentioned that I was getting excited about the charts again. They were actually starting to resemble recognizable formations and coming back into meaning versus the hopium induced ramps that were unchartable and made little sense.
Today SPX tests (actually breaks after the open) the second major support at the 1422 top. With the wedge appearing to have completed its proper formation, it may be all over but the crying from this point on. Have you seen the earnings projections for Q4? Heck, have you seen the earnings results for this quarter?
Minis 4hr - the first major hurdle for the bears is conquered and now 1400 looms and the big blue falling diagonal which was the original market resistance line off the 2007 top. There will be a major battle at that retest and then another at 1375 if that fails. The death spiral is now in sight.
More commentary and charts below as usual.
GL and GB!